Another domino has fallen NIL

[bcoach]

I haven't read the entire settlement yet as it is not official yet but my understanding is the 20 million is a total amount of revenue sharing between all sports. Ohio State paid more than that in NIL alone this past season. There is talk that once the revenue sharing is in place, that NIL will truly be regulated to make sure it is fair compensation for commercial value and NOT pay for play. If, and this is a huge if, the powers that be truly regulated and enforce NIL then this may not be nearly as bad for App as I was thought. I assume most large schools will spend the vast majority of that 20 million on their revenue sports, so the non revenues will most likely get very little besides scholarships. I am not sure how much extra will be left over each season to poach the G5 teams as schools are going to have to take care of their own. It may lessen the amount of poaching simply because the spigot will be significantly reduced and monitored. There is a huge increase in the scholarship levels of many non revenue sports (and football up to 100), baseball and wrestling would impact us the most as now schools will be able to give full rides to almost triple the amount of kids that are currently allowed. This will hurt because even without worrying about NIL competition, I am not sure we can afford 30 full rides in baseball and wrestling. So we will most likely lose some depth in both sports based on that. If we can find a way to fund the extra scholarships, we may not suffer as much as we currently do or as much as I was anticipating. That is all based on effective monitoring and enforcing of NIL.

I see no way on earth it can be regulated. How are you going to do that? As far as revenue sharing we don't have any to share.

I agree that we, and many other schools, don't have revenue for sharing. I think that is one of the reasons that App brought NIL(ish) contributions in house, so that they can be used as a revenue share. As far as enforcement, there is talk at the Power level of making a clearing house (outsourcing) where every NIL deal in excess of $600 has to be reported and it is scrutinized. Now this won't stop unlawful giving but if there are teeth put into the agreement to outsource the enforcement and schools that are caught not reporting the NIL deals are appropriately punished then maybe things get better. Again, there are a lot of "ifs and buts" for this to actually work. I will say that I do wonder if some of the big time donors in NIL don't desire for some regulation because it has to hurt giving millions with little to brag about in return and not being able to deduct the money. Whereas, if NIL is regulated and enforced properly, those donors get to give directly to the schools again and get the significant tax benefit and don't constantly feel like players are renegotiated every semester. I am skeptical but trying to see this in a way that won't hurt us as much as I previously thought.

Here is what I am wondering. Let’s pick a business. Let’s say I am a car dealer, and I want to make sure we have a decent QB. So, I am going to pay him to do commercials. How are they going to regulate that?

[appdaze]

They can't regulate NIL. The same lawsuits that broke the NCAA will come back again and win again. Like Bcoach just said, they can't stop a car dealer from giving a person 10 mil to be in commercials.

The only thing they can regulate is the revenue sharing from the school. They can't regulate private citizens paying other private citizens for a job in their marketing campaigns. Revenue sharing is Not NIL. Those are two different pots.

This cat is out of the bag.

[appdaze]

Everyone is talking about NIL and the Transfer Portal, but what might be really driving all of this is Legal Sports Gambling.

I've mentioned before I think this is a big mover and shaker of all of this. I don't think it's the only driver, but I think they have a hand on the wheel. If I'm a gambling group, I pay 4 top tier basketball players to go to Houston. Thay cost me 1.5 million. Over the course of the seasons my group makes 5 million on their games and another 3 million on their tournament run. Profits.

[Bootsy]

I haven't read the entire settlement yet as it is not official yet but my understanding is the 20 million is a total amount of revenue sharing between all sports. Ohio State paid more than that in NIL alone this past season. There is talk that once the revenue sharing is in place, that NIL will truly be regulated to make sure it is fair compensation for commercial value and NOT pay for play. If, and this is a huge if, the powers that be truly regulated and enforce NIL then this may not be nearly as bad for App as I was thought. I assume most large schools will spend the vast majority of that 20 million on their revenue sports, so the non revenues will most likely get very little besides scholarships. I am not sure how much extra will be left over each season to poach the G5 teams as schools are going to have to take care of their own. It may lessen the amount of poaching simply because the spigot will be significantly reduced and monitored. There is a huge increase in the scholarship levels of many non revenue sports (and football up to 100), baseball and wrestling would impact us the most as now schools will be able to give full rides to almost triple the amount of kids that are currently allowed. This will hurt because even without worrying about NIL competition, I am not sure we can afford 30 full rides in baseball and wrestling. So we will most likely lose some depth in both sports based on that. If we can find a way to fund the extra scholarships, we may not suffer as much as we currently do or as much as I was anticipating. That is all based on effective monitoring and enforcing of NIL.

I see no way on earth it can be regulated. How are you going to do that? As far as revenue sharing we don't have any to share.

I agree that we, and many other schools, don't have revenue for sharing. I think that is one of the reasons that App brought NIL(ish) contributions in house, so that they can be used as a revenue share. As far as enforcement, there is talk at the Power level of making a clearing house (outsourcing) where every NIL deal in excess of $600 has to be reported and it is scrutinized. Now this won't stop unlawful giving but if there are teeth put into the agreement to outsource the enforcement and schools that are caught not reporting the NIL deals are appropriately punished then maybe things get better. Again, there are a lot of "ifs and buts" for this to actually work. I will say that I do wonder if some of the big time donors in NIL don't desire for some regulation because it has to hurt giving millions with little to brag about in return and not being able to deduct the money. Whereas, if NIL is regulated and enforced properly, those donors get to give directly to the schools again and get the significant tax benefit and don't constantly feel like players are renegotiated every semester. I am skeptical but trying to see this in a way that won't hurt us as much as I previously thought.

Looks like we may soon come full circle from where we started.

[Bigdaddyg1]

Bingo on the sports gambling aspect. We all know that rich folks spend stupid money on sports but outside of the owners of pro teams “regular” rich people don’t funnel tons of cash into their favorite pro football team other than to rent a luxury suite or box. They aren’t directly paying the salaries. There can’t be that much obsession to see Alabama win championships unless there is an expected or hopeful payoff- betting. That Houston example might be spot on. If I’ve got stupid money to spend why not load up on reasonably cheap top talent- I say cheap because even $10m a year for a team who can possibly net me $20m in sports winnings is a great investment. I am randomly throwing out figures of which I have zero basis for but on the surface the amount paid in NIL seems crazy for college players but if they return huge profits with gambling winnings it’s often a small investment.

[BambooRdApp]

I do wonder though...how many rich alumni, that give to NIL, are out there gambling heavily as well?.
Are the 3 or 4 Dook alumni, that supported the basketball team this year through nil, heavily betting in the gambling market ?

Maybe it is more than I think, however not sure it is much as people think it is.

[APPdiesel]

Did anyone spot the interview clip from Mickey Joseph the head football coach at Grambling State proposing buyouts for players? If App were to pull a transfer off of his roster, we would have to pay him a buyout for that player. Same as if Missouri pulled a player off of ours. And I think that’s a fantastic idea. The school accepting the transfer would have to weigh whether or not it’s worth it to pay a buyout for a player.

Coaches have buyouts. Missouri compensated App State for hiring Drink away. School A should have compensate school B for acquiring an asset that they put tens of thousands of dollars into developing.

https://x.com/FOS/status/1907825168170254398

[appdaze]

The more that comes out from coaches and administrators I'm starting to think college is going to look like some hybrid of pro baseball and pro soccer in terms of league salary caps, transfers, buyouts etc. The g5 would truly be a minor league for the p3. Buy outs would go down depending on how many years of eligibility a player has left. Teams could buy the rights to players for them to transfer like pro soccer. Players from p3 benches could be sent to g5 teams on loans for a season of development before returning to their home team the next season like soccer.

Honestly I think it's still wide open what this may look like in 10 years, but I could see it going in that direction. No academics don't matter. That has been made clear.

[t4pizza]

I haven't read the entire settlement yet as it is not official yet but my understanding is the 20 million is a total amount of revenue sharing between all sports. Ohio State paid more than that in NIL alone this past season. There is talk that once the revenue sharing is in place, that NIL will truly be regulated to make sure it is fair compensation for commercial value and NOT pay for play. If, and this is a huge if, the powers that be truly regulated and enforce NIL then this may not be nearly as bad for App as I was thought. I assume most large schools will spend the vast majority of that 20 million on their revenue sports, so the non revenues will most likely get very little besides scholarships. I am not sure how much extra will be left over each season to poach the G5 teams as schools are going to have to take care of their own. It may lessen the amount of poaching simply because the spigot will be significantly reduced and monitored. There is a huge increase in the scholarship levels of many non revenue sports (and football up to 100), baseball and wrestling would impact us the most as now schools will be able to give full rides to almost triple the amount of kids that are currently allowed. This will hurt because even without worrying about NIL competition, I am not sure we can afford 30 full rides in baseball and wrestling. So we will most likely lose some depth in both sports based on that. If we can find a way to fund the extra scholarships, we may not suffer as much as we currently do or as much as I was anticipating. That is all based on effective monitoring and enforcing of NIL.

I see no way on earth it can be regulated. How are you going to do that? As far as revenue sharing we don't have any to share.

I agree that we, and many other schools, don't have revenue for sharing. I think that is one of the reasons that App brought NIL(ish) contributions in house, so that they can be used as a revenue share. As far as enforcement, there is talk at the Power level of making a clearing house (outsourcing) where every NIL deal in excess of $600 has to be reported and it is scrutinized. Now this won't stop unlawful giving but if there are teeth put into the agreement to outsource the enforcement and schools that are caught not reporting the NIL deals are appropriately punished then maybe things get better. Again, there are a lot of "ifs and buts" for this to actually work. I will say that I do wonder if some of the big time donors in NIL don't desire for some regulation because it has to hurt giving millions with little to brag about in return and not being able to deduct the money. Whereas, if NIL is regulated and enforced properly, those donors get to give directly to the schools again and get the significant tax benefit and don't constantly feel like players are renegotiated every semester. I am skeptical but trying to see this in a way that won't hurt us as much as I previously thought.

Here is what I am wondering. Let’s pick a business. Let’s say I am a car dealer, and I want to make sure we have a decent QB. So, I am going to pay him to do commercials. How are they going to regulate that?

Sure, they can't really regulate that example as long as the commercial is actually made and aired. But then again, I would consider that the true purpose of NIL even if the pay is excessive. Not saying there aren't loopholes and that some players may be paid more for a commercial than people think they are worth, but as long as the service is actually being provided I assume that stuff would be ok. Still better than what we have now.

[bcoach]

Was a bad idea, is a bad idea, always will be a bad idea.

[AppWyo]

Was a bad idea, is a bad idea, always will be a bad idea.

Unless you are the one getting paid...

[bcoach]

Was a bad idea, is a bad idea, always will be a bad idea.

Unless you are the one getting paid...

I will not at all be surprised if it does not turn out so well for some of them either.

[ASU84]

Was a bad idea, is a bad idea, always will be a bad idea.

Unless you are the one getting paid...

I will not at all be surprised if it does not turn out so well for some of them either.

I believe bcoach, that we are pretty much on the same page. For one thing we can all say that the NCAA fumbled the ball when NIL was introduced. And it seemed all so fast moving from scholarship. to scholarship + cost of attendance, to scholarship + uncontrolled NIL in a heartbeat.
In what ways do you feel it may be the worst idea?
1) Taxes
2) lifestyle changes
3) Poor financial decisions
4) All the above
5) Other

[AppWyo]

https://www.abi.org/feed-item/how-athle ... rming-rate

Remember, these are the athletes that made the big time.

[bcoach]

Was a bad idea, is a bad idea, always will be a bad idea.

Unless you are the one getting paid...

I will not at all be surprised if it does not turn out so well for some of them either.

I believe bcoach, that we are pretty much on the same page. For one thing we can all say that the NCAA fumbled the ball when NIL was introduced. And it seemed all so fast moving from scholarship. to scholarship + cost of attendance, to scholarship + uncontrolled NIL in a heartbeat.
In what ways do you feel it may be the worst idea?
1) Taxes
2) lifestyle changes
3) Poor financial decisions
4) All the above
5) Other

All of the above to a point but the real loss could be not ending up with a degree. My best guess is that the majority of guys who get some money will not end up in the pros. They will need to get a job. Running from school to school for a few dollars is going to be tough on credit hrs. In addition to the fact money will be more important than classes.

[Bootsy]

https://www.abi.org/feed-item/how-athle ... rming-rate

Remember, these are the athletes that made the big time.

ESPN produced a “30 for 30” episode in 2012 called “Broke” which, while dated, goes into a lot of detail on this subject.

[fjblair]

The more that comes out from coaches and administrators I'm starting to think college is going to look like some hybrid of pro baseball and pro soccer in terms of league salary caps, transfers, buyouts etc. The g5 would truly be a minor league for the p3. Buy outs would go down depending on how many years of eligibility a player has left. Teams could buy the rights to players for them to transfer like pro soccer. Players from p3 benches could be sent to g5 teams on loans for a season of development before returning to their home team the next season like soccer.

Honestly I think it's still wide open what this may look like in 10 years, but I could see it going in that direction. No academics don't matter. That has been made clear.

I wonder how many fans are going to tolerate a "college" sports world that looks like that, and how many are going to bail over the next 5-10 years?

[KentHogan]

The more that comes out from coaches and administrators I'm starting to think college is going to look like some hybrid of pro baseball and pro soccer in terms of league salary caps, transfers, buyouts etc. The g5 would truly be a minor league for the p3. Buy outs would go down depending on how many years of eligibility a player has left. Teams could buy the rights to players for them to transfer like pro soccer. Players from p3 benches could be sent to g5 teams on loans for a season of development before returning to their home team the next season like soccer.

Honestly I think it's still wide open what this may look like in 10 years, but I could see it going in that direction. No academics don't matter. That has been made clear.

I wonder how many fans are going to tolerate a "college" sports world that looks like that, and how many are going to bail over the next 5-10 years?

I can only speak for myself, but I came close to not renewing my season tickets because of this mess.

Truth is, only the fans rejecting it can save it.

Calling it college football at this point is just inaccurate.

Glad I was able to experience the game before it was dismantled.

[Stonewall]

A lot of truth there Mr Hogan.

[AppStFan1]

The more that comes out from coaches and administrators I'm starting to think college is going to look like some hybrid of pro baseball and pro soccer in terms of league salary caps, transfers, buyouts etc. The g5 would truly be a minor league for the p3. Buy outs would go down depending on how many years of eligibility a player has left. Teams could buy the rights to players for them to transfer like pro soccer. Players from p3 benches could be sent to g5 teams on loans for a season of development before returning to their home team the next season like soccer.

Honestly I think it's still wide open what this may look like in 10 years, but I could see it going in that direction. No academics don't matter. That has been made clear.

I wonder how many fans are going to tolerate a "college" sports world that looks like that, and how many are going to bail over the next 5-10 years?

I can only speak for myself, but I came close to not renewing my season tickets because of this mess.

Truth is, only the fans rejecting it can save it.

Calling it college football at this point is just inaccurate.

Glad I was able to experience the game before it was dismantled.

Same here. I actually think the best thing to happen would be if fans completely boycott and give these players a dose of humility. They don't make anything without us but sadly too many people won't reject this mess so it will either be a slow death that lasts decades or we have to hope that a sustainable, fair system is put in place because this one is not.